GoCardless Launches Open Banking Payments, Offering Businesses a New Alternative to Taking One-Off Payments

• Instant Bank Pay leverages the unique combination of the GoCardless global bank debit network and open banking technology
• The feature provides merchants a low-cost, seamless and convenient way to collect instant payments from new and existing customers through a single platform
• Although half of Americans have “no clue” what open banking is, the introduction of open banking payments helps address their day-to-day annoyances, such as updating their payment details every time they get a new credit or debit card

GoCardless, a leading fintech for bank-to-bank payments, launched Instant Bank Pay, a new open banking feature directly integrated into its global payment platform. With Instant Bank Pay, merchants can take instant, one-off bank-to-bank payments from new and existing customers while still reaping the benefits of bank debit for their recurring payments.

The announcement marks the first milestone in GoCardless’ journey to accelerate its open banking strategy, for which it received $95 million in funding at the end of 2020. By combining open banking technology with its existing global bank debit network, GoCardless can offer its more than 60,000 merchants a new low-cost, seamless and convenient way to collect instant payments that works for any revenue model.

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“We’ve specialized in bank-to-bank payments for over 10 years, with bank debit being the primary payment method. And, while it provides many advantages to consumers and businesses, speed of payment authorization is a drawback,” said Hiroki Takeuchi, co-founder and CEO of GoCardless. “Instant Bank Pay addresses this pain point by giving merchants the best of both worlds: open banking will provide instant confirmation of payment authorization, enabling them to have immediate visibility of their one-off payments, and bank debit will continue to offer the cash flow, cost and retention benefits business owners have come to expect.”

With the introduction of Instant Bank Pay, GoCardless will expand its offering into the adjacent e-commerce market, where it can take on both one-off and card-on-file payments.

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Takeuchi added, “By enabling businesses to take any kind of payment through GoCardless, we can challenge the dominance of cards and move beyond collecting subscriptions, invoices and installments. The launch of this open banking feature means we can now serve any merchant, regardless of whether they have an ongoing or one-off relationship with their customers.”

While it can be used in many scenarios, Instant Bank Pay addresses an issue that is particularly acute for recurring revenue businesses. According to research from GoCardless, 85% of merchants with this business model have a need for collecting additional one-off payments. Examples include collecting a payment upfront at the start of a subscription, purchasing additional goods or services, or adding money to an account outside of a customer’s regular payment schedule.

Bank debit is not suitable for some one-off payments because it doesn’t provide instant visibility of payment authorization. This has forced many merchants to turn to card payments, often with high fees attached, or time-consuming manual bank transfers. Instant Bank Pay is a fast and easy way for customers to make a one-off account-to-account payment. Instant confirmation provides better visibility of payments, eliminates costly credit card fees, and reduces late payments, thanks to a seamless payer journey.

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